Halloysite Nanotubes the Target of Extensive Searches by NaturalNano

NaturalNano,
Inc., a developer of advanced nanomaterials and additive
technologies, today announced it is ramping up current efforts aimed at
developing additional domestic and international sources of halloysite
nanotubes (HNT), the key component in the Company's newly launched
additive for manufacturing stronger, lighter and less expensive
materials: Pleximer.

Rochester, NY-based NaturalNano said HNT occurs
naturally in certain clay found in the United States, Australia,
Europe, South America, and Asia, and has been mined for centuries for
use in porcelain and other materials. With NaturalNano's proprietary
application of HNT in its Pleximer product, manufacturers gain numerous
competitive advantages over traditional additives, including the
ability to create extended release applications. While the Company's
current sources of HNT are fully sufficient to support current customer
demand for Pleximer, NaturalNano said it launched the new exploration
project to support anticipated growth and continued testing.

"The true beauty of halloysite nanotubes, beyond the clear
advantage of stronger, lighter, and less expensive nanomaterials when
produced with HNT , is that it can be sourced from multiple mines
around the world, which will allow us to better manage costs and
quality," said Cathy Fleischer, President and Chief Technical Officer
of NaturalNano. "In addition, HNT's unique qualities give us the chance
to fully explore the potential in our extensive IP portfolio, which we
have bolstered with our exclusive license agreement with the U.S. Naval
Research Laboratory."

NaturalNano said it is currently developing HNT sources and
potential partnerships in the western United States as part of the
Company's ongoing focus on industry partnerships and joint venture
sourcing and technology development. While undergoing the development
process, NaturalNano said it continues to have access to reserves of
HNT to meet customer demand and to continue laboratory-scale testing of
additional Pleximer products. NaturalNano has purchased and is
warehousing a six month supply of HNT based on current projections, and
will continue to add to the supply throughout 2008. NaturalNano said it
expects to introduce several new Pleximer products in the first half of
2008, with extended release applications coming online later next year.

Fleischer concluded: "As the marketplace increasingly looks to
utilize the advantages of nanocomposites in various products, our
supply chain partnerships - both our joint development
agreements and potential partnerships with halloysite-producing mines -
place us in the lead to leverage and optimize interest in the space. As
we continue to focus on HNT development, these channel partnerships,
along with our tremendous technical team and focus on product
commercialization, will be strong competitive advantages for us as we
bring additional products to market.

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